Iran strikes push up cost of net zero as aluminium prices rocket

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🗞️ Driving the news: Aluminium prices are surging after Iranian drone strikes targeted major Middle Eastern smelters, raising concerns that the cost of the global clean energy transition could rise as supply disruptions hit key materials used in electric vehicles and solar panels

🔭 The context: The attacks struck facilities including Emirates Global Aluminium and Aluminium Bahrain
• Aluminium prices jumped 3.7% in a single day to about $3,395 per tonne and have risen roughly 33% since the start of the year, amid broader disruptions linked to the conflict in the Middle East and the partial closure of the Strait of Hormuz

🌍 Why it matters for the planet: Aluminium is a critical material for the energy transition, used extensively in electric vehicles, renewable energy infrastructure, and grid equipment
• Rising prices could increase the cost of EV manufacturing and solar installations, potentially slowing the deployment of clean technologies

⏭️ What’s next: Analysts warn aluminium could climb to $4,000 per tonne if supply disruptions worsen
• Producers and governments may increasingly treat aluminium as a strategic mineral, accelerating efforts to diversify supply chains and strengthen domestic production

💬 One quote: “We have moved into a new phase where the impact is becoming very significant,” said metals analyst Natalie Scott-Gray.

📈 One stat: A typical European electric vehicle contains about 283 kg of aluminium, compared with 169 kg in a petrol car

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